PPI could be biggest consumer financial scandal ever

PPI could be biggest consumer financial scandal ever

PPI now on course to be the biggest consumer financial scandal of all time, according to consumer group Which?

It has also called for tougher regulation of Claims Management Companies (CMCs).

HSBC yesterday said it has set aside a further £340 million for PPI redress costs, bringing the total PPI provisions across the banks to £10 billion.

Last week Lloyds increased the amount set aside for PPI claims to £4.3 billion, and RBS is also expected to set aside more money when it reports its results this Friday.

The total for the UK’s five largest banks – HSBC, Lloyds, Barclays, RBS, and Santander – now totals £8.8 billion.

“These latest figures from the banks show that PPI is now on course to become the biggest consumer financial scandal of all time, exceeding pensions mis-selling and the endowment mortgage scandal,” said Peter Vicary-Smith, Which? chief executive.

“The banks must make it straightforward for people to reclaim PPI themselves, for free, so they don’t resort to expensive and unnecessary CMCs.

“We now need the government to raise its game too, and toughen up the regulation of unscrupulous CMCs who are exploiting consumers who just want to claim back what is rightfully theirs.”